Petronas Chemicals, BASF agree on $462 mln investment in Malaysia

KUALA LUMPUR, April 9 Wed Apr 9, 2014 8:44am EDT

KUALA LUMPUR, April 9 (Reuters) - Malaysia's Petronas Chemicals Group Bhd and BASF Nederland BV have agreed to invest 1.5 billion ringgit ($462.82 million) in an aroma ingredients complex in the central state of Pahang, according to a local stock exchange filing on Wednesday.

The board of BASF-Petronas Chemicals Sdn Bhd, a joint venture between BASF and Petronas Chemicals on a 60:40 basis, has approved the final investment decision, Petronas Chemicals said in the filing.

The first plant will come on stream in 2016, the chemical unit of Malaysia's state oil firm Petroliam Nasional Bhd said. BASF Nederland is part of German chemical group BASF SE.

"The project will allow the parties to meet the globally growing demand of customers in the flavour and fragrance industry, especially in Asia," Petronas Chemicals said.

($1 = 3.2410 Malaysian Ringgit) (Reporting By Yantoultra Ngui. Editing by Jane Merriman)

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